Solid Power Releases Q3 2023 Results, Ships First A-Sample EV Battery Cells to BMW to Enter Automotive Qualification.
Solid Power, Inc. (Nasdaq: SLDP), a leading developer of solid-state battery technology, today announced its financial results for the third quarter ended September 30, 2023 and that it has shipped its first A-sample cells to enter automotive qualification.
Recent Business Highlights
- Made first A-1 EV cell deliveries to BMW to formally enter automotive qualification
- Ongoing BMW demo car program deliveries on track
- Ramping up SP2 electrolyte volume for EV cells and phased out SP1 production
John Van Scoter, President and Chief Executive Officer of Solid Power, said:
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It is a reflection of our team’s strong execution that we produced and delivered our first A Sample EV cells for BMW a little over a week ago, marking a major milestone for Solid Power.
“We are very excited to make these deliveries, begin the formal automotive qualification process, and continue on our path towards commercialization. These A-1 EV cells will also support BMW’s demo car program, which we expect will also be a major proof point for our technology.”
“On the electrolyte side, we are producing electrolyte at SP2 in greater volumes and have phased out our SP1 powder production. This puts us solidly on track to continue to increase production and demonstrate our ability to manufacture at scale for potential partners,”
“As we look ahead, we believe we are well-positioned to achieve our key objectives and drive strategic growth,”
“We are operating with competitive urgency as we seek to further our leadership position in the market and deliver long-term value for our partners, employees, and shareholders.”
Third Quarter 2023 Financial Highlights
Third quarter 2023 revenue was $6.4 million, an increase of $3.6 million compared to the third quarter of 2022, as a result of continued execution under the company’s joint development agreements. Revenue for the first nine months of 2023 was $15.1 million, up $7.5 million from the same period in 2022.
As expected, operating expenses were higher in the third quarter and first nine months of 2023 compared with the same periods in 2022. This increase was driven by accelerated investments in product development and the scaling of operations. Third quarter 2023 operating loss was $21.5 million and net loss was $15.1 million, or $0.08 per share.
Balance Sheet and Liquidity
Solid Power’s liquidity position remained strong, with September 30, 2023 total liquidity totaling $422.3 million, as shown below.
| ($ in thousands) | September 30, 2023 | December 31, 2022 | ||||||
| Cash and cash equivalents | $ | 27,458 | $ | 50,123 | ||||
| Marketable securities | 166,030 | 272,957 | ||||||
| Long-term investments | 228,806 | 172,974 | ||||||
| Total liquidity | $ | 422,294 | $ | 496,054 | ||||
The company’s cash, cash equivalents and investments are held at leading global banks and are invested in grade A corporate and government securities with an average maturity of 15 months.
Third quarter and year-to-date 2023 capital expenditures totaled $8.3 million and $29.5 million, respectively, primarily representing investments in the company’s new electrolyte production facility.
2023 Outlook
Solid Power’s 2023 outlook and goals remained unchanged. Through the date of this release, the following milestones have been completed:
- Initiated production from Solid Power’s SP2 electrolyte production facility.
- Began delivering electrolyte to potential customers for sampling and feedback, which is ongoing.
- Began delivering EV cells to joint development partners.
Solid Power remains committed to delivering on the following key objectives:
- Scaling electrolyte production from SP2.
- Continuing to deliver EV cells to our joint development partners as we begin the automotive qualification process.
- Continuing to improve key cell performance metrics, including energy density, pressure, cycle life, low temperature operations, and safety.
As Solid Power executes on its milestones, the company now expects that for 2023, cash used in operations will be slightly below the original $70 million and $80 million range, and capital expenditures will be slightly below the original $50 million to $60 million range. Development progress and efficiencies combined with prudent capital investment deferrals allowed the company to reduce its 2023 planned investments.
2023 revenue is still expected to be in the range of $15 million to $20 million.
Webcast and Conference Call
Solid Power will host a conference call at 2:30 p.m. MT (4:30 p.m. ET) today, November 7, 2023. Participating on the call will be John Van Scoter, President and Chief Executive Officer, and Kevin Paprzycki, Chief Financial Officer.
Interested investors and other parties can listen to a webcast of the live conference call through Solid Power’s Investor Relations website at ir.solidpowerbattery.com.
The conference call can also be accessed live over the phone by dialing +1-844-826-3035 (domestic) or +1-412-317-5195 (international).
A recording of the conference call will be available approximately three hours after the completion of the call at ir.solidpowerbattery.com or by dialing +1-844-512-2921 (domestic), or +1-412-317-6671 (international). The pin number for the replay is 10183075. The replay will be available until 9:59 p.m. MT (11:59 p.m. ET) on November 21, 2023.
About Solid Power, Inc.
Solid Power is developing solid-state battery technology to enable the next generation of batteries for the fast-growing EV and other markets. Solid Power’s core technology is its electrolyte material, which Solid Power believes can enable extended driving range, longer battery life, improved safety, and lower cost compared to traditional lithium-ion. Solid Power’s business model – selling its electrolyte to cell manufacturers and licensing its cell designs and manufacturing processes – distinguishes the company from many of its competitors who plan to be commercial battery manufacturers. Ultimately, Solid Power endeavors to be a leading producer and distributor of sulfide-based solid electrolyte material for powering both EVs and other applications. For more information, visit http://www.solidpowerbattery.com/.
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Solid Power Releases Q3 2023 Results, Ships First A-Sample EV Battery Cells to BMW to Enter Automotive Qualification. source
